Saudi Arabia attracted $65.1 billion in foreign direct investment (FDI) in the three years following the pandemic until 2023, placing it among West Asia’s top recipients, a new report suggests.
According to the latest World Investment Report by the UN Conference on Trade and Development, the Kingdom’s FDI outflows totaled over the same period $73.1 billion, with $16 billion recorded in 2023 alone. This ranks Saudi Arabia 16th among the top 20 economies globally for FDI outflows.
Legal, economic, and social reforms to stimulate FDI
To stimulate inflows of foreign direct investment, Saudi Arabia has enacted substantial legal, economic, and social reforms in accordance with the goals set out in the National Investment Strategy (NIS) and Vision 2030 targets. Launched in 2021, the NIS aims to develop comprehensive investment plans across various sectors such as manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and healthcare.
The strategy aims to increase annual FDI flows to over $103 billion and boost annual domestic investment to more than $453 billion by 2030. In 2023, the UN report noted a 55 percent annual increase in the value of international project finance deals in Saudi Arabia, reaching $22 billion. The country also witnessed 19 such deals, marking a 90 percent growth compared to the previous year. Additionally, Saudi Arabia saw 389 announced greenfield projects in 2023, totaling $29 billion, reflecting a 108 percent annual increase in value.
Global FDI trends
Globally, FDI experienced a marginal yearly decline of 2 percent in 2023, dropping to $1.3 trillion. The analysis highlighted that the overall figure was significantly influenced by substantial financial flows through a few European conduit economies.
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